High inflation likely to push interest rates above 5% and force up mortgage and loan payments just ahead of election
- Hunt will back more rate rises even if they lead to recession
- Households warned to brace for 5%-plus mortgage rates
Rishi Sunak has been warned the UK economy could be in recession next year as stubbornly high inflation pushes interest rates to more than 5% before the next general election.
Setting the stage for a further rise in borrowing costs on mortgages and loans for millions of households, economists predicted the Bank of England could be forced to drive Britain’s economy into a recession to tame inflation.